You have been asked to determine the standard cost for each personalized stepping stone manufactured by a stone and tile company. Each customized stone requires one stone, 3 ounces of paint, 45 minutes of direct labor (engraving, painting, packaging), and a box for packaging. You receive the following cost information:

The company applies overhead at a rate of $12.40 per direct labor hour, and fringe benefits for workers are an additional 25% of wages. What will you say is the standard cost of producing one small stepping stone?

$10.52

$37.16

$17.34

$27.86